Feds indict insider in Blagojevich probe

October 30, 2008

A federal grand jury today indicted longtime Republican power broker William Cellini in the Operation Board Games investigation of corruption in state government.

Cellini was charged with conspiring with others to force a real estate investment firm headed by Hollywood producer Thomas Rosenberg to raise or donate substantial political contributions for Gov. Rod Blagojevich. The governor is not charged with wrongdoing.

Cellini's name played a prominent role at the trial earlier this year of Antoin "Tony" Rezko, a former top Blagojevich adviser and fundraiser who was convicted on fraud charges.

Federal prosecutors have portrayed Cellini as a key participant in a pay-to-play scheme centered around the activities of the board of the Teachers' Retirement System. In court filings and at Rezko's fraud trial, Cellini was alleged to be part of a plan to corrupt the board and extort kickbacks and campaign contributions from firms seeking state business.

In testimony at the trial, Cellini was alleged to have been a key part of the plan to extort Rosenberg, whose Capri Capital Advisers firm was in line for business from the Teachers' Retirement System.

Prosecutors said Cellini and Rezko conspired with fellow Blagojevich fundraiser Chris Kelly to give Rosenberg a choice on how to free up a $220 million TRS investment that Stuart Levine, a member of the TRA board, had stalled with the board. Rosenberg was told to either pay Levine a fee of 1 percent of the $220 million or make a $1.5 million donation to the Blagojevich campaign fund, authorities said.

"If [Rosenberg] feels that he'd rather walk away from the money than deal with Tony, then there it is," Levine said in a conversation with Cellini that was captured on tape after Levine agreed to work undercover with federal authorities. The plan fell apart when Rosenberg threatened to go public, officials said.

Federal investigators also captured a Cellini-Levine phone call that suggested Blagojevich was aware of Rosenberg's refusal and that Capri would not be getting any Illinois business in the future.

"The big guy said, 'Rosenberg means nothing to him,'" Cellini said in that call.

Cellini is the 13th defendant charged in the ongoing Operation Board Games federal investigation of the Blagojevich administration.